Elite Trader's Gambler's Anonymous ETGA

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Hello there Remiraz,

I only trade one of the systems which is the carry system. I discontinued trading in the other system for now. There is not a stop loss or a target. Actually, there is not much trading at all. Recently, there have been some trades, but now the system is calming down and just making its daily interest injections.

I just make money on the interest differential and occasional trading to keep the balance.

This Journal is a lot of reading and perhaps I should start a new Journal just with the one system and rules.

When the News breaks, it really has not affected this system too much, as I keep the exposure calibrated with three pairs that trade independently from each other currently.

Thanks for reading, and check in from time to time...

Michael B.

Quote from Remiraz:

hi ElectricSavant, good to see that u're doing well.

i'm curious about something. in both your systems, u hold position past news announcements right? (NFP, GDP etc)

wouldn't it get pretty wild during those times? like 100 pip gap during NFP etc. wouldn't that screw up your calculations because u can't get in or out during those times?

i was pondering this because i have a system which might require holding positions overnight...not sure if i want to hold any when the market gap 100-200 pips. T_T
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Quote from ElectricSavant:

Remember that max leverage on USD/MXN is 25:1 as with the other exotics..also the rates need to be updated as they change, I am looking at this spreadsheet for later comment...

Max you obviously saved 100 pages in this Journal...Thanks. I have many questions, but I am still studying your spreadsheet, so that I do not make a fool of mysef. I actually like the 22 pair trading as the risk is the lowest. But how do you weight them?..I got to look more...
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Right, that's why i didn't get much interest from USD/MXN. (This one seems a safe short bet anyways since 1 year).

My spreadsheet is very basic. I don't describe very much in there. Suffice to say that you chose you %account you put on every position, then you input the number of position you take on each pairs. You can take 1 AUD/JPY and 3 USD/MXN or any kind of combination, you just have to adjust the %position accordingly.

To the left are the interest return and all that. To the right are the exposure (if you go long AUD/JPY it make 1 exposure AUD -1 exposure JPY). It's basic but it's a way to see if you don't have too much exposure on any currency (very easy to be overly short JPY). I even computed continental exposure on the far right.

Then it's all trial and errors. I try to stay with the top 8 pairs, others are for "hedging" purpose to keep exposure low. USD/CAD is useful to me since my account is in CAD.

The other sheet is where i input and update all interest rates, and where i noticed the huge interest rate spread that Oanda keeps for itself. I guess that's where they make most of their profits!

My plan is to use somewhere around 80% of my buying power, use stop loss, and not using a cash sub-account. We'll see what happens...
 
The risk thing is nothing, it's just 1 / #positions. Just to have some kind of easy to read indicator. But obviously, the more pairs you have, the less risk you face.

Also i don't keep track of correlation between pairs, i just try to use common sence for this.

I suggest the 14 pairs setup, i think i keeps good balance risk-return. The 22 pairs has many hedging pairs that don't pay much, even some overlap like long CHF/JPY, short CHF/JPY...
 
Folks,

I hope you appreciate this Journal. Max is demonstrating his inward security in knowing his profession well and sharing publicly one way to trade and "Not Gamble".

You, "traders-to-be" and experienced traders, please understand this stuff in this Journal can help you find YOUR way to the holy grail and to discover how to "Not Gamble".

There are HUNDREDS of ways....Find Yours...and share..don't worry, there is another door opened, when one is closed. It's all about helping others and sharing....Strive to be peacemakers and remain humble (you have a boiling pot at your finger tips, be excited you should be).

Michael B.

ET and company, I would like to thank you for this opportunity. But most of all, I would like to Thank the Lord Jesus Christ for Saving me and allowing me to take my next breath to share.
 
Folks,
One quick note, remember Max has an account in CAD. I am trading a system in USD. The point is to understand his method and find YOUR currencies. (now about page two of his spreadsheet, I am digging into that and have a lot of questions, but I must study it first). Then I will ask my sometimes obvious questions for the edification of all. Perhaps Wifey may get involved too.

Michael B.
 
Max,

Where did you get your data for page 2?

Is it taking the conversion to CAD into the values?

Michael B.

P.S. by the way, I like your use of Control +5 for the visual that the strikethrough line gives and marks...
 
EUR/AUD ranks higher on your list than my ranking list calculates through fxmath. But the values seem to be correct. I have a USD rate in the platform however.

Do you have an explanation for this max?

Michael B.
 
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